Embattled company ups the ante

Not content with printing its own "private dollars," a Kissimmee company under federal investigation for issuing fraudulent checks announced it is now going to print actual U.S. dollars.

Angel Cruz, chairman of The United Cities Corp., said Friday that he has given notice to several federal agencies about his new plan.

He is also calling for the Department of Treasury's Office of the Comptroller of the Currency as well as the Federal Reserve System -- which he has called "Satan's banking system"-- "to prove or retract their false claims within 48 hours" about his company issuing "worthless" checks.

Cruz said the U.S. government is not doing its job by allowing the Federal Reserve, the autonomous central bank that issues U.S. dollars, to take care of its currency.

So he and his network of business affiliates will do it.

He said he will be printing "real U.S. dollars," because he considers those issued by the Federal Reserve illegal, since they are not backed by gold, silver or any other tangible assets.

"Who gave me the right? The American people within the network, by signing all the contracts, by providing legit currency, legal currency, because the reserve note is not a legal currency. It's a monopoly, which is against the law."

Treasury officials could not be reached for comment Friday, but a U.S. Secret Service official said the agency would add the new development to its probe.

"We will let the chips fall where they may later on," said Jim Glendinning, assistant special agent-in-charge with the service's Orlando field office. "We will investigate, and we will let the U.S. Attorney's Office [make] the decision on the appropriate action."

The unusual case surfaced last month after dozens who had joined the project as employees for Kissimmee nonprofit JC Consultores Laborales, a partner of Cruz's company, deposited checks rejected as fraudulent.

Dozens of employees, mostly of Hispanic origin, had accepted work with the nonprofit, counting on an offer from United Cities. They were told their jobs would be guaranteed for 30 years, with unusual benefits such as a house purchased at a low-interest rate, a new leased car every three years and free health insurance. The company also offered to pay all their debts and utilities.

All was done using checks printed by United Cities. Those were backed by "The United States Private Dollar" that Cruz conceived. He said his currency is backed by undisclosed assets and the future earnings of his network's employees.

Those employees encountered problems with banks, utility companies and creditors when they used checks lacking standard routing numbers. Some of them remain faithful to the project, but more are questioning what will happen.

"I am losing sleep over this," said Rafael Perez, a Miami resident who signed a United Cities employee contract.

His credit-card companies closed his accounts after United Cities sent the checks it printed to pay Perez's debts. He was concerned the same might happen with his mortgage.

"I don't want to lose my house," said Perez, 45.

However, nonprofit president Josefina Calderon said Friday that despite the concerns, she remains on Cruz's side. Calderon is responsible for co-signing "private dollar" grants that Cruz issues, authorizing his money's use.